- DX Papus Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2017, Job No. 4725 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $11,000; direct labor $6,000, and manufacturing overhead $9,000 Job No. 4723 had been completed at a cost of $45,000 and was part of finished goods inventory. There was a $5,000 balance in the Raw Materials Inventory account. During the month of January, the company began production on Jobs 4726 and 4727, and completed Jobs 4725 and 4726. Jobs 4723 and 4725 were sold on account during the month for $75,000 and $64,000, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $64,000 on account. 2. Incurred factory labor costs of $31.900. Of this amount $7,500 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $12,000; indirect labor $7,500; depreciation expense S14,000, and various other manufacturing overhead costs on account $11,000. 4. Assigned direct materials and direct labor to jobs as follows. Job No. 4725 4726 4727 Direct Materials $5,000 15.000 13,000 Direct Labor $3.000 11.500 9,900 5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours incurred on each job were as follows: Job No. 4725, 200, Job No. 4726.800; and Job No. 4727.660. Instructions a) Calculate the predetermined overhead rate for the year 2017, assuming Aries Manufacturing estimates total manufacturing overhead costs of $450,000, direct labor costs of $300,000, and direct labor hours of 20,000 for the year. b) Open job cost sheets for Jobs 25, 26, and 27. Enter the January 1 balances on the job cost sheet for Job No. 25. c) Prepare the journal entries to record the purchase of raw materials, the factory labor costs incurred, and the manufacturing overhead costs incurred during the month of January. d) Prepare the journal entries to record the assignment of direct materials, direct labor, and manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). Post all costs to the job cost sheets e) 3s necessary. f) Total the job cost sheets for any job(s) completed during the month. Prepare the journal entry (or entries) to record the completion of any job(s) during the month. g) Prepare the journal entry (or entries) to record the sale of any job(s) during the month. h) What is the balance in the Work in Process Inventory account at the end of the month? i) What does this balance consist of? 1) What is the amount of over- or under-applied overhead? k) Prepare the journal entry to resolve the over- or under-applied overhead Page 3 of 7 85 of 973 words D. Focus + + B E -- opte D 100% az 11 Type here to search N s 9 w A 10 it la 10:00 AM 9/15/2020 EA